The bill, S.B. No. 324, mandates that state contractors, political subdivisions, and private employers in Texas participate in the federal E-Verify program to verify employment authorization for their employees. It amends Chapter 2264 of the Government Code, changing its heading to reflect "Certain Restrictions on Public Subsidies and State Contracts." The bill introduces new sections that outline the requirements for contractors to register and participate in the E-Verify program, including a stipulation that contracts with state agencies must include a certification statement regarding the contractor's eligibility. Additionally, it establishes procedures for barring contractors from state contracts if they fail to comply with E-Verify requirements.

Furthermore, the bill adds provisions to the Labor Code and Local Government Code, requiring employers and political subdivisions to verify the employment status of new hires through the E-Verify program. It specifies that failure to comply may result in immediate termination of responsible employees. The bill sets a timeline for state agencies to develop necessary procedures by December 31, 2025, and establishes that the E-Verify requirements will take effect for new contracts and employees starting January 1, 2027. The overall aim is to enhance the verification of employee information and ensure compliance with federal employment authorization laws.

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